that's this edition of 60 minutes on cnbc. i'm steve kroft. thanks for joining us. captioning by captionmax www.captionmax.com i'm eamon javers. nbc predicts rick santorum added a third state to his win colum., ohio is the big story of the night so far. still too close to call with over 86% of the coat counted. one percentage point straeparat the two candidates. rick santorum with 38%. mitt romney with 37%. mitt romney will appear on "squawk box ""this morning and we'll have continuing coverage on squawk box tonight. i'm jim cramer. welcome to my world.

you need to get in the game. >> firms are going to go out of business. he's nuts. they're nuts. they know nothing. i always like to say there's a bull market somewhere. mad money. you can't afford to miss it. hey, i'm cramer. welcome to mad money. welcome to cramerica. my job is not just to entertain you but to educate you about tough days. call me, 1-800-743-cnbc. one really horrible session and all of a sudden everybody starts playing pin the tail on the selloff. to explain the precipitous decline in the averages. they were precipitous with the dow jones pulling. s&p, no stopping. nasdaq sinking 1.36%. did president obama give israel the okay for an air strike on iran's nuclear facilities? did greece slip to being on the eventual of default? is gasoline going to skip over $4, maybe go to $5, how about $6? are earnings about to collapse from a strong dollar and excessively high oil costs?

is china on the precipice, the precipice of some super collapse only a handful of people are looking for? do you know every single one of those reasons i just gave all swirled from counting trading today, they all played some part in the market's violent pullback which began -- i got up a quarter after 4:00 this morning. my daughter sent me one of those games with friends things that went off. that helped me wake up. next thing i know the market is down 2% 3%. before you second guess the reasons or where i was when they were happening, let me say these negatives are real. not too late if you want to trim back your positions there. that's right. i'm advocating that. we're down less than 3% from the highs. it's not too bad. last year at this time we dropped 7% from our february heights. at 3% exit point for stocks you may not be kracrazy about in yo portfolio because they run so much? not a cent.

blessing. take it. let's take a step back and examine the reasons behind the selloffs so we can figure out how worrisome they are before we go off the deep end. first and foremost, most important, this iran/israel missile crisis. it is that. going into this weekend, i thought, you know, there was a pretty good chance we might be able to get out of this with a peaceful resolution. not unlike how we dealt with the russians in the cuban missile crisis in '62. i lived next to a naval air force base at that time. i remember the planes darkening the sky like it was yesterday. when i listened to president obama speak sunday, read stories about his meeting with prime n minister netanyahu, i'm growing skeptical about an outcome as good as that one. if this crisis gets out of hand, it will cause our markets to get hammered, perhaps more than this year at this time. i don't want to ponder, israel

err iran, if there's a real war. if the shooting war is avoided, it can lead to the stalls we saw in 2008. nobody seems to be selling the stuff heavily. oil dropped today but remains cheap on the tankers you can rent for $10,000, hoard crude. those can be cheaper than what it takes to rent a fully loaded circle line around manhattan for heaven's sake. you have to throw air fresheners on the deck. if oil spikes, gasoline can potentially go to 6 bucks a gallon or worse, can have lines at the pump like in '79 when i could only drive on odd numbered days which is a drag because i was living in my car. this market nor economy are set up to for out of control gas prices or lines at the pump. president obama is not a bluff artist, made that point in the "atlantic" magazine, seems to mean business. his warning should scare any rational nation's leaders into

compliance, right? are iran's leaders rational like the soviets in 1962? we'll see. they act more like martyrs than statesmen. the average is only a handful of points -- a war is worth entertaining when we put in our investing calculous to figure out what happens. it's hard to believe this is back on the agenda. we get too upset about this. i was. can't get this greece thing solved. pressuring our financials, just the way it did last year. the notion we're once again battling this contagion is outrageous. pathet pathetic. it speaks to how fragile everything is over there and they don't have one government. i worked the funds all day on this issue and can't find a soul who knows what's going to happen. that's not reassurance. i follow the gold and fxe. when gold and the fxe go down, those are signs things are going awry over there. it's deflationary. people want to be in the dollar for protection. guess which direction they're

looking? down. the european struggles throughout their bailout with greece, the betting line suddenly shifted to smart money saying, it's going to fail. we have to wait and see before we get more positive. wait and see. back to the wait and see european stuff. even that concept is repulsive. sure iran and greece are both awful. ask, what does that have to do with the earnings of bristol-mye bristol-myers? turns out higher energy costs coupled with weakness in the euro are playing havoc with earnings. we've seen stocks go up because they sell at 14 times earnings in a world where there's little competition for bonds. what the numbers are headed down because of higher energy costs and weak dollar? being an approximate cause for merck, big international drug company warning about the future this morning. obviously earnings aren't going to be as good as we thought this late in the quarter, we can't be as bullish as we like. the dollar has to start coming down, gasoline prices have to

come down to change the negative chain reaction. timely y finally, yes indeed, we have to focus on it. there's china. i don't think the economy is crashing. let's move this more slowly. that would be fine. so was india and brazil. they were okay. now they're facing head winds. no one there is thinking about growth. that's disappointing. if america is the only major nation on earth with accelerated economy, that's not going to stand. we, too, will only be in retreat. parameters that seemed like they were bullish. maybe a reversal. like we had last year. at least until we get some resolution on the key issues. the bottom line, sure i wish last week i had stood here 2.5% to 3% ago and told you i foresaw that china was lowering the boom, that obama was yellow lighting israel against iran. a huge increase in oil prices or

the sudden plummeting of the euro as greece fell backwards. i didn't see the negatives coalescing in 96 hours which is what they did. trim back your winners. maybe aggressively as i did for actionownersplus.com. i took outside gains today. raced a lot of cash. it's worth the risk of watching it climb. that seems too armed, to dangerous, to electricfied to scale for the most bullish of investment. if you want, it's spring training, my friends, and i'm keeping my bat on my shoulder or waiting in the dugout for clearer signs things are improving before i want to step up to the plate. let's go to jerry in new york. >> caller: boo-yah, jim,

boo-yah, jim. >> boo-yah, jer, boo-yah, jer. >> caller: with 35, it had gone down that point about ten points. and the express scripts news was out and i saw the same sales this morning which was not comforting, could i, should i hold or sell -- >> i think all the negatives are now on walgreens and little repositiv repositi repositi repositives. i would not sell it. i think the stock could hold in here. walgreens goes right to 40. they seem suicidal out there. i do like their cut. markets facing internal worry, international worry. it's the china syndrome, it's the iran/israel missile crisis. there could be trouble brewing. haunt this? we trim some winters. we have a lot of them. we're only down 3% from the high. have some stuff to take because you don't like it as much? tomorrow, that's the day. maybe we can get a little bounce and do it. "mad money" will be right back. coming up, suit up? as america gets back to work, what will they wear? cramer's got a stock that could have them looking the part. and later, on a roll?

this tasty stock's been hitting new all-time highs as they continue to expand and take market share. cramer's on location with the company's founder and chairman just ahead. >> this is a large overraj. i'm killing you. plus, as the 100 year supply of the nation's cleaner fuel continues to pile up. the price of it continues to sink. near a bottom or more pressure ahead? cramer is checking the technicals on a whole new edition of off the charts. all coming up on "mad money." miss out on some "mad money"? get your "mad money" text alert today. text mm to 22621 to get cramer on your phone. for more info, visit madmoney.cnbc.com or give us a call at 1-800-743-cnbc.

yo, yo. we know greece is still stinking up the joint. we're on high alert about iran and israel. we cannot overlook that the

united states has slowly but surely been getting better. ♪ take friday. that's when the labor department releases its february employment report. i bet we're going to get a real good number. just like last month. you're probably thinking, all right, good, that's a good number. how do i play? we know more hiring is a good thing in general, but who benefits from it specifically? other than the people being hired? well, how about cintas, ctas for you home gamers. the largest uniform rental company in america with a stunning 37% market share. one that gets more than 90% of its sales from the united states, so you don't need to concern yourself with the grecian bailout formula. it got 900,000 customers, including mcdonald's, w hotels, royal caribbean, numerous brake and muffler shops, among others.

why do i like cintas so much? what do companies need when they hire more workers? in a lot of cases they need more uniforms. that's why they've had an incredible run since the lows of october. rising 40% in the last five months. really kind of just like this. now, i've been thinking about recommending this one ever since last month's fabulous jobs report, but i wanted to wait until we got a pullback, and that pullback never came until today when we got an ever so slight 2% decline. 67 cents. i'll take it. this is pretty much the first time this stock has given up any points since the fantastic quarter reported in late december. i think this recent weakness might be the best chance you'll get to pick up cintas. i have been patient. if i'm right about friday's labor department report, this stock should roar on friday. hey, could never look back. not with the iran and israel, but put it this way, it's got less risk than other stocks i'm following. before i get to cintas, why do i think the labor department's report will be so food?

number one, the employment figures have been trending higher for months now. long enough i believe to create what i call a virtuous circle where more hiring leads to more consumer spending on cars and retailers and restaurants, and even with $4 to $5 gasoline, which leads to more hiring as companies try to keep up with newfound rising demand. it's totally self-reinforcing, and it's been going on for a while now. last month's report was truly terrific with private sector payrolls increasing 257,000, and the unemployment rate sinking to 8.3%. do you know what? i think we could see the same thing happen with february report on friday. especially since the weekly jobless claims, well, they keep getting better all through the month. with last week's numbers coming in at a four-year low. now, there's no question the labor market has gotten much stronger, much tougher, much better, much better, more resilient, if you're looking for a play on job creation, i have to tell you, i think it's harder to find. i was thinking about paychecks, automatic data. really cintas is far more responsive to the kinds of jobs being created. what exactly does this company

do? most of the businesses renting out uniforms along with rentals like vats, mops, towels, bathroom cleaning supplies. the way it works is pretty simple. i sign up to be a cintas customer, they'll drop clean uniforms at your office every week while simultaneously picking up the dirty ones to be washed. hey, that's a great business model, and it is 71% of the company's revenues. cintas also smells uniforms. smaller part of the business. 11% of the revenues. while it was hard hit during the downturn, it's come back with a vengeance. they help companies comply with osha, selling first-aid cabinets, hard hats, ear plugs, respirators. boy, is that ever stuff you can't do without? hey, have you ever seen a company cut back on that stuff? hey, let's cut back on the respirators? i don't think so. and cintas has a document management division where they're offering services like shredding confidential materials. these are smaller parts of the company because they offer a lot of cost selling opportunities because they drive a truck to the business.

now, the last time they reported back on december 20th, it was a blow-out quarter. 9 cents earnings beat off the 40 cents basis. organic rental revenues up 7.9% year-over-year. the largest increase since the fourth quarter of 2005. seven years. company also raises jut lo s ou the rest of 2012 fiscal year. the next quarter when they report two weeks from march 19th, that's that will be their fiscal third quarter. these are phenomenal numbers. the beat didn't come from a better job market. there's only been nominal improvement at the time. no, these results were mainly driven by new account wins, greater customer penetration. not by a stronger employment picture. i think it saves money to use cintas versus the other guy. since then, though, the job situation in this country has begun to improve dramatically. you have to think, if cintas can deliver a great report in the labor market, think how they will do now that we've seen serious improvement? plus the cintas of today is a leaner, meaner company. a more profitable enterprise than the cintas of four years ago.

during the recession the company radically streamlined its operations cutting costs and improving efficiency. okay? and now those moves are paying off in the form of higher margins. last quarter cintas made after the sales expanded by 60 basis points. 33.2%. plus, they sell a lot of unused capacity. as the capacity utilization ramps in response to higher demand, it should be a lot more profitable than it was the last time around. key term here, and this is one i know you probably can hear, your eyes glaze over, but it's the most important term in business other than inventory, leverage. not the debt but the operating leverage. a piece of authentic wall street gibberish, meaning as cintas grows revenues, its margins will increase so for every additional dollar of sales, a higher percentage flows down to the bottom line, and on top of everything else, this cintas is extremely shareholder-friendly. you know, it raised its dividend for 29 consecutive years. now, you say, wait a second, it only has a 1.4% yield. that's because the stock has been a high flyer. i call that a high quality problem.

cintas is a few of the buybacks that i'm considering legit. they authorized $500 million buyback. 10% of the market cap. 12% of the float. meaningful number considering it already shrunk its share cap by 12.9% last year. it sounds like auto zone, doesn't it? every single one of those purchases was done at substantially lower prices than where the stock is right now. i suspect they'll be in there buying lately another reason why the stock has been stronger than most since it reported. plus, cintas didn't include the buyback on earnings per share guidance. i think the numbers can be way too low. if only because the company is dramatically shrinking the denominator. shrinking like these pants are shrinking. i just had that in my mind, shrinking and shrinking going on here. even at their huge run cintas sells for just 15 times forward earnings, but it's got a 13.3 longer growth rate. measure that versus the p/e. it's a buy on any weakness. we finally got some today. here's the bottom line.

if you, like me, believe friday's quarter report will be really good, then cintas might be the way to play it. let's say you wanted 200 shares, okay? i would buy 100 before that friday employment report, and if it isn't the blow-out we expect this time, and i think there will be one later, i buy another 100 after to get a terrific basis for your stock position in this fantastic company that you probably never heard of. let's go to derek in georgia. derek? >> caller: boo-yah, jim cramer. how you doing? >> super tuesday boo-yah back at you, derek. >> caller: all right. all right. check me out. i'm considering the unemployment numbers coming out on friday. if they're good, do you feel like visa would benefit from such a number? >> well, i got to tell you, there's a lot of different things that benefit visa, but i have always viewed visa as a technology company, meaning -- not a bank. that the more people move from paper to plastic is what matters for visa. i don't care for visa right at this level. i want it to come lower because it's been such a red hot stock.

i need a breather for visa. let's go to josh in arizona. josh? >> caller: b-b-b-b-boo-yah, jim. >> i'm going to give you -- i don't know, a baseball season boo-yah. they got some baseball going on out there. go ahead. >> caller: i have a question in regards to some reits you had recommended. egp. >> some clown downgraded that the other day. i want to go there in beat -- anyway, disagreeing opinion than me. i'm sorry, go ahead. >> caller: and dlr. >> not -- not as good for me. i don't like dlr as much because it has more of a run, but they are both -- no, no. i'm not going to say they are both. i happen to think each group partners is remarkable because it got through that incredible decline in real estate investment trust in the late '80s, early '90s. they are seasoned practitioners, and by the way, david hoster, i invite you on to the show any time you like. he's the ceo. hey, if you think like i do that

the engine of the labor market is kicking into high gear, suit up with cintas. maybe you want to get the ups that are not 140% polyester next time, staff. after the break, ones that itch and shrink less. coming up, on a roll? this stock has been hitting all-time highs as they continue to expand and take market share. cramer is on location where the bread is baked with the company's founder and chairman, just ahead. >> this is the overage. i'm killing you. [ male announcer ] the draw of the past is a powerful thing. but we couldn't simply repeat history. we had to create it. introducing the 2013 lexus gs, with leading-edge safety technology, like available blind spot monitor... [ tires screech ] ...night view... and heads-up display. [ engine revving ]

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and i'm a cancer survivor. [ mimi ] i had cancer. i have no evidence of disease now. [ erica ] i would love to meet the people that made the machines. i had such an amazing group of doctors and nurses, it would just make such a complete picture of why i'm sitting here today. ♪ [ herb ] from the moment we walked in the front door, just to see me -- not as a cancer patient, but as a person that had been helped by their work, i was just blown away. life's been good to me. i feel like one of the luckiest guys in the world. ♪ even on a completely miserable day where the market was crushed by a variety of international worries, let's not forget, there are terrific american companies out there that don't need to worry about greece or china or anything

outside the western hemisphere. companies like cramer faith panera, pnra. the baker cafe chain with over 1,500 locations in north america. this is a beloved brand. one that's reinventing the casual dining business with its high quality breads, soups, salads and sandwiches that give panera a customer experience that may be rivaled by chipolte. they were many line back on february 7th. stock fell 7%. people were expecting a much better number, and they only got a decent one. panera has a fabulous long-term record of out-performance. it is up 220% since i first got behind it when my daughters told me to in july of 2008, and that's why i was thrilled to visit panera's newly opened manhattan store. first in new york city. talked with the cow founder and executive chairman of panera. take a look. i'm here at what may be the panera last frontier. >> absolutely. >> this is historic. are you in manhattan. what's the difference between manhattan and the suburban stores that so many of us are

used to? >> it took us over 1,500 stores to get here, but i'm really pleased that we're able to finally reach manhattan and bring the panera experience to manhattan. no different than what you get everywhere else. >> a lot of the spaces for restaurants are small, but paneras are crowded. what's different? what have you created here? >> well, we made the commitment to do the full panera experience here, so you are going to come in here. you're going to see 4,000, 5 ,000 feet, 100, 150 chair and tables and you're going to have an environment to sit down, catch your breath, breathe a little bit and really experience pane panera. >> people deliver food to your table here? >> here we deliver food to your table. we do that in about 10% of our stores today, and increasingly we're doing that in more and more of our cafes. >> it made me aware that a lot of the analysts are saying they had 1,500 stores. they could go to 3,000. if you just got to manhattan, that's probably not an unreasonable goal, is it? >> you know, i never really look at how many stores we can have. what i look at is what the growth potential is over the next three years and the reality is we have more than enough growth for the next three years. we're feeling very excited.

we just completed a year in which we were up 28%. we see continued opportunity for pane panera. >> now, one of the things that everyone is concerned about, oil this morning, we're up in the high 120s. gasoline, obviously, going higher. there are paneras all over the country. you have to get in your car to drive to. any sign at all this is impacting the price of the ticket that people buy? will trade down at all? or is it just business as usual on comps? >> you know, it's been phenomenal. we were up at 8.9% for the first month and a half of this year. comps continue to be strong. i will tell you that in previous gas crisis it's tended benefit panera because people stay closer to home, and we are closer to people's homes. >> now, one of the things that i find fascinating is that there are only a couple restaurants that resonate as more than restaurants. it's kind of a secret sauce. in other words, a panera also,

it would include chipolte. they have a cache that we don't expect about a casual dining. say two or three reasons why panera is different from everything else. we'll explain the comps story. what is it? what's different? >> i think it actually starts with the fact that people trust this place. i mean, you know, we were the first people to do all natural antibiotic-free chicken. >> right, right. >> we've had calories up on our menus for years now. we have any number of organic food items on the menu. i think panera has built its success of being of our communities and of our roots and i think, frankly, the food is good. i think ultimately people vote with their stomachs and they come to panera because this is really good. >> okay. now, what's changed at panera? we have drive-thru now. >> yeah. >> we have a lot of technology that makes things seem like a little bit faster. what's different -- if i went to a panera now versus two years ago? >> you know, jim, people ask me all the time what are we doing new and different? what i try to tell them, we've

been trying to do the same thing for 20 years, which is deliver real food that gets people excited. to doing it in environments that engage people and have it served by people with self-respect. within the context of that, we've continued to evolve, so you are seeing -- you're seeing turkey like you get at thanksgiving at panera. you're seeing salmon on the menu. you're seeing a roll-out things like our thai chicken salad. >> my favorite. >> with lettuce like you're going to get at the finest hotels in the country. >> but still 410 calorie >> 410 calories. i think it's not about new and different as much as it's about continuing to evolve and continuing to do better that we have been doing for 20 years. people don't want anything more than really good food in environments that feel comfortable to them, and that respect them. >> let's talk about the business strategy here. >> sure. >> recently you bought 16 restaurants franchises in north carolina. now, i think when i ask people about that, the first thing they say is why do you buy a franchise that you already

basically have a lot of business with? is that because franchises don't do as well as company-owned? >> no, no, not at all. it's very simple for us. we have no debt and hundreds of millions of dollars in cash, and when we can deploy that cash properly, we will. where do we look to deploy it? we deploy it when we can buy our franchisees at multiples that look attractive. we'll deploy that when we can buy similar flags, businesses like panera and that attract a multiple or by buying our own stock. so it's simply a financial transaction, and in this case this was a wonderful franchisee, somebody we love very much who basically got to a point where they'd been at this for 15 years, it was ready for them to move on. we saw it as an attractive financial transaction. >> in your second of those three variables, you said buy someone. manhattan, very crowded real estate.

there is an outfit called cozy. i can't reveal any particular strategy. if something like that were to come up for sale, would that be an opportunity to jump-start manhattan? >> well, i'll say it to you this way. i'll tell you what we have done, not what we might hypothetically do. we bought parady's bakery in phoenix. which was at that time about 45 bakery cafes. we bought it because they were the strongest player in the phoenix market and we had great respect for the leadership and the culture of the company. you know, we are open to that, but obviously it's got to be the right deal for panera, and we are never ever going to be doing anything that's silly. >> okay, now, with 1,500, you can obviously do these national campaigns. you're doing your first cable campaign. >> yes, yes. >> and you are in it. >> i'm having a lot of fun with it. >> go ahead. how did you become the pitch man for panera? >> it helps to be the founder, but the reality is i'm not the pitch man. what i am is -- i have been given a chance to speak about why we created this and i think

as you know, you know, the very best restaurants have all been created by people who have a love of it and a passion for it and we created panera to try to create the environment we wanted to eat in and do so in a place with a bit of soul. >> love and passion and soul are the stuff of loyalty. you have a loyalty program now going. infinity program. >> yeah. >> you had 9.5 million just a month ago. where is it now? >> we're pushing closer to 10 million. we're feeling great. the really -- the real value of that loyalty program is, one, it surprises and delights guests, but as well, it's the information. we are pushing 40% to 45% of our transactions on those loyalty cards. >> 40% to 45%. >> of all transactions are on the card. we are able to track individually what people do, and because we're able to track that, we're actually able to market to you in a way that is unique to you, jim. so we know what you are doing, and we know how to get you the things that actually further your engagement and your

affection for panera. >> i live in the suburbs right outside new york. >> not far from where i grew up. >> we were within seven or eight miles of each other. there are a number of blockbusters that have gone under. to me it's a fabulous space for what i would regard as panera. you got a nice wide store, usually in a pretty good neighborhood with big parking. is that something you're negotiating to do? >> of course, we're looking at all kinds -- you know, when the recession hit, that was the time for us to invest. >> right, right. you did. >> we stepped on the accelerator. that's why the stock went up in the recession. we invested in the customer experience. our comps went up. we're going to continue to do that. we are financially disciplined but have a tremendous growth vehicle that we're able to work with. the escalator is continually upward, and you'll continue to see panera grow and continue to do a better job for its guests. >> let's talk gross margins. again, i want to be able to be specific for people that say, hey, the stock is kind of treading water here. there are a lot of people worried about costs going up. that is not a cost at panera.

>> no, i would say not. our wheat has come down. as i think, you know, we're bought out for the year. >> right, right. >> we're feeling good. i mean, you know, listen, i think that this company has been in existence now as a public company since 1981. i think, you know, it's been one of the best performing restaurant stocks in the last decade, one of the best consumer stocks. i think anybody who has invested in this company and judged it over a three-year period has had a very satisfactory experience. >> one last one. >> yes. >> starbucks at one point in this country, which i would consider somewhat similar to panera because -- >> sure. >> by their own admission, they grew too fast, couldn't support the staff, didn't have the right management. are you -- is that something you are worried about, or are there plenty of people looking to get a job at panera? >> i think howard would say they got ahead of themselves. they grew too quickly, and they were focused on growth as an end as opposed to running great cafes. i would argue that we at panera

have never lost that discipline. we continue to manage our growth. it's why we manage our growth. if we get ahead of ourselves, then shame on us. >> all right. well, i want -- i wish that starbucks had that. they had to change management to get it back. you've had consistent what i regard as transition because now you're the executive chairman. >> i am fully invested in panera. i have a wonderful partner in bill morton. we're at this every day. >> this is founder and chairman of panera. good to see you in person. thank you very much. >> thanks. i'm aimen jabbers.

nbc predicts mitt romney won in idaho. the gop race is virtually tied in ohio after the polls have closed. mitt romney overtook rick santorum and leads. look at this, 5,000-plus votes separate the two candidates. romney will appear on cnbc's squawk box tomorrow morning. continuing coverage here on cnbc tonight.

it is time -- it is time for the lightning round. ♪ >> buy, buy, buy. >> sell, sell, sell. then the lightning round is over. are you ready, ske-daddy? it's time for the lightning round. i want to start with justin in connecticut. justin! >> caller: i big uconn huskies boo-yah to you, jim. >> oh, man, a justified boo-yah back at you, justin. >> caller: yep. the stock is ticker ims, an optical networking company. where do you see this stock in this sector going? >> i have to rely on what mr. t. said about the upcoming battle against rocky. i see pain. i want you to sell, sell, sell. let's go to john in new mexico. john. land of enchantment. >> caller: b-b-b-boo-yah, jim. >> what's going on there, partner? >> caller: hey, you recently made a great call about not

jumping into kid digital, kitd at $12.75, but down around $8.75. >> no, we took -- we took a hard look that the. it's too speculative for this. >> sell, sell, sell. don't buy, don't buy. now i'm going to mike in oklahoma. mike? >> caller: boo-yah, captain cramer. >> aye, aye, sir. what's up? >> caller: god bless our troops and journalists. praise the lord. >> indeed. >> caller: electronics international, jim. >> no, my friend. we're going send you right to jbl. does same business but better. mine is better. i see you flextronix. go to dwight in illinois. dwight. >> caller: hey, jim, a chicago white sox skee-daddy boo-yah to you, jimbo. >> right back at you, sox master. what's going on? >> caller: as a retired dividend investor, should i hang in there after the merger of pvx and ppl? >> i got to do work. i got to do work because some of these yields are a little dicey these days. we're going to come back on prov energy and make a decision. we can't do it on the snap. let's go to kevin in utah. kevin? >> caller: triple boo-yah, jim.

>> quadruple boo-yah back at you. my charitable trust owns it. it got hit yesterday. it is an apple play. we got a big apple introduction tomorrow. people are saying it's head and shoulders and rolling over. i think it's an expensive stock. i am a buyer not a seller. buy, buy, buy. stephanie lake, research director, at $34, we pull the trigger. brian in new york. brian? >> caller: jim, big brooklyn boo-yah, to you. >> what part? >> caller: midwood. >> nice big houses there. what's up? >> caller: got a question on yum brands for you. >> i got the answer. >> caller: last year they made a really nice profit of over 26%. i'm planning for the next year. do you think i should buy more, hold, or take my profits? >> this is a tough one, because i got to tell you, we own it. the charitable trust owns it. i was hoping it would come in. honestly i know that sounds counterintuitive. we don't own enough. buy, buy, buy. this is 63, 64.

you're going to be in there with me pulling the trigger. how about jeffrey in california. jeffrey? >> caller: hey, jim. sunny california boo-yah from pepperdine law school. >> pepperdine law school. it's so beautiful. let's go to malibu together and sit on the beach and watch the sun. the sun. all right. go ahead. >> caller: for sure. asking about deutsche bank if i get another gift like today where it hemorrhages 6%, 7%. >> i'm on that, my money in deutsche bank. i'm not sure if i want to own the stock at deutsche bank. i am still not settling enough to own a european bank. i have a lot of problems, i don't need to own d.b. i think it's a good bank, and that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin.

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trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. ♪ accentuate the positive >> when the market gives you lemons, make lemonade. i'm all about being a happy guy. i take a page from johnny measures other the really hideous days we need to accentuate the positive, eliminate the negative, stay away from mr. in between. that's why after the horrible mauling we took today, i want to talk about a potential turn in one of the most hated groups out there. second only to coal. yes, i'm talking about the natural gas stocks. yes, even though we have a huge glut of natural gas in this country and the price of the stuff just keeps getting pounded, there are some very under the radar signals that this group could be ready to not only bottom, but also rebound in a major way. those signs are coming not from the fundamentals where i hear

that it could be natural gas could be considered in the highway and not from the fact that chrysler will make trucks that are natural gas. no. it's about the charts, which is why tonight we're going off the charts with the assistance of a terrific technician who runs a website, feminaziqueen.com. she's seeing generally bullish patterns. there's nothing good happening with natural gas. the commodity. when it comes to the chart of the united states natural gas fund, the ung, which many of you ask about constantly, it's the etf that tracks the price of nat gas. albeit imperfectly. oh, man. i can't -- it's not safe. don't look at it. it's too ugly. the chart is hideous. ung making new lows. nothing to feel good about. the company produces natural gas, and we often comment on this show and getting back to even that the etf does not work for them. it's a disaster. avoid it. next, i can't take it. i'm going to have a nightlight tonight because of that. please get rid of it. she thinks some of the mat gas

stocks will be -- her reasoning is nothing to do with a commodity and everything to do with a bullish pattern that started appearing in charts in the largest gas producers in north america. isn't this funny? i have a dealers chart. bear with me. the best way to get a handle on where the stocks are is going not looking at the action of the ung, she thinks you should take a look at an run related company that has nothing to do with natural gas altogether, but dillards, the department store chain. i mean, what the heck does dillard's have to do with chesapeake and encana. it's pronounced that way. not just because i'm from philadelphia. simple. the very same pattern that borroweden sees building in the charts have already played itself out in dillards. this is one beautiful chart. they may have no relationship whatsoever. when you think like a technician, chesapeake and encanna could follow in the foot steps of dillard's. thatld be a very good thing. dillards has been rallying like

crazy. where stock patterns are more important than the companies behind them. it doesn't matter that we're comparing department stores with oil and gas concerns. as absurd as that may sound to fundamentalists out there. check out dillard's charts. before the huge rally, dillard's did something that she considered incredibly important. the stock had been made lower lows and in late january it shifted and dillard's made a higher high. this is the beginning of the pattern she's talking about. after the higher high, you have to watch the next pullback to see if the new more positive trend will hold up, if the stock makes a lower low, the whole pattern falls apart. if it makes a higher low, which is what dillard's did, you could see it made a higher low, you could make a magnificent rally. that's exactly what happened here. socks soared 40% in the last month. by isolating that pattern, see, that was a higher low. that was the tip-off, and right now she sees the exact same pattern forming in the charts of two despised stocks, chesapeake and encana.

let's start with chesapeake. take a look at the action. listen up, this may actually make your day after that horrible "rolling stone" article about you. just like dillards at the end of january, chesapeake has broken out of a bearish pattern and lower lows and lower highs by breaking out above its prior swing high on january 25th making it a much higher one. that's step one. now the stock is pulling back. they're looking for an entry point to play a rally, but it needs to be just right. chesapeake drops below, and back on january 20th, whole trade falls apart. however, the stock still good three points above that level. i don't think we need to be worried about that. i'm looking for a potential dillard's here. you can see the exact same thing in encanna's chart. it's made a series of lower highs. then in late january, step by step, inch by inch, encanna broke out above its previous high from january 4th. after the recent pullback, the stock is it just nickels and dimes above the wholesome levels that broden thinks is so important. they create a floor support in the 1864 to 1926 area.

here's your support. that's where she would buy. she jumped ship if it dropped to $17.28. that was below its prior level. that would take out the prior low of january 20th. now, broden is not saying that they will have huge runs like dillards. she does think the chart is giving you a bullish setup. this is a setup. same as dillard's. usually leads to -- the bottom line, the natural gas stocks, they have been a virtual apartment house of pain lately because of the commodities that have been obliterated, and then they're like a complex. there's something finally happening that's positive about this group. the charts are on your side in chesapeake and encanna. at least as interpreted by the queen, carolyn. encanna has a magnificent 4% yield to fall back on if the reinforced floor does fall through. "mad money" is back after the break. i think the volt is an awesome car.

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it's happening all over again. big losses on the sexy dot.comes. if i had hair, i'd be pulling it out. i clearly failed at my mission to convince you not to buy the red hot ipo's in the aftermarket. the latest yelp stock flew out of the chute when it became public last friday. now it's plummeting, and the buyers in the aftermarket have no idea what they own or why they own it, other than the fact

it was hot. this is traj ix, people. it's tragic. you're wastie ining your money u buy deals like yelp in the aftermarket. something i'll keep repeating until it gets to everyone's heads. there's no earnings or even the prospects of profits any time soon. it was once offered $500 million by very smart google and they said, no, and now it's worth twice that in the public market. too rich for my blood. i'm not saying all dotcoms are horrible buys. zynga, a company with a terrific product, including games i play personally with my kids, gave you awe fabulous moment to buy the stock right after it broke the syndicate price, authentic wall street gibberish for when the stock went public. groupon, public at 20. traded at 15 not along after that, and then zoomed back to 20, but it traded at 26 in the aftermath of the ipo, and buying it there was a sucker's game. stock plummeted almost 11 points almost immediately. how about home away? wonderful collection of websites for renting homes all over the world. became public at 27 and then went to 45, and then it slid down to less than 20, well below the ipo price.

people who didn't understand the company got caught up in the enthusiasm, blew it out at a big loss. how about pandora? ran up to 20, got spanked down to 9, another hideous aftermarket buy. another hideous after market buy. even the best ones are too dangerous to buy in the aftermarket. think linkedin. it came crashing back to 59 where it bottomed. at least that one held there. in each of these cases only a tiny number of the overall company shares were sold in the public, which is how they got generated anyway. in any case, most people who wanted in on the ipo didn't get in, as the hot stock was reserved for the best clients and a few others. they took action in the aftermarket, foolish action that cost people lots of money. look, we're going to get many more of these deals going forward. all i ask is that you not buy into the pop in the aftermarket. if you can get in the ipo, terrific. if you can wait for it to come down, you have my blessing. but buying the pop, total mugs game. please, please knock it off, will you? >> does the market have you stumped? no fear. cramer is here.

just e-mail him. madmoney@cnbc.com.

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